Exit and Growth Strategies for Middle Market Businesses

The report below gives a good overview of the second quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q1 2018 included 149 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Bodega Latina Corp, majority owned by Grupo Comercial Chedraui SAB de CV, acquired Fiesta Mart LLC, a portfolio company of ACON Investments LLC, for a reported US$300 million. The transaction would expand the company’s operations in Texas and its market position in the US Hispanic population. Fiesta Mart is located in Houston, Texas and operates grocery stores.

As e-commerce sales continue to take market share from traditional brick-and-mortar retailers, the percentage of consumers buying products directly from their mobile devices continues to expand.

Industry Indicators

Total US consumer spending, an indicator of nonstore retail sales rose 2%, primarily from services expenditures, in March 2018 compared to the same month in 2017.

US personal income, which drives consumer nonstore retail spending, rose 3.6% in March 2018 compared to the same month in 2017.

US retail sales for nonstore retailers, a measure of demand, increased 10.7% in the first four months of 2018 compared to the same period in 2017.

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